Prime Minister of Ukraine Denys Shmyhal expects that the opening of a land market in the country will bring $85 billion of additional GDP in 10 years, and the average cost of land per 1 ha will increase fivefold.
“Ukraine has underutilized its land potential of $85 billion. In 29 years, free disposal of land has been limited, which means that its value has been underestimated several times. During this time, more than 5 million hectares of land have disappeared from the state. Development of irrigation and investment in agriculture has slowed down for decades, and partially stopped at all,” the prime minister said during the presentation of the Audit of the Ukrainian economy and vectors of economic development until 2030 in Kyiv on Friday.
According to the published document entitled “Audit of the Economy of Ukraine”, the fair value of Ukrainian land is currently $4,960 per hectare with a standard monetary value of $955 per hectare (2018).
At the same time, since the model of the land market adopted by the government has several fundamental restrictions (a ban on legal entities from buying land until 2024, a complete ban for foreigners, restrictions on the maximum areas to purchase), the price of land will not reach its fair value in the near future.
Thus, according to the land market model adopted by the Cabinet of Ministers, the price of one hectare is predicted to increase to $2,350 in the tenth year after the implementation of the reform.
Untapped potential of using water, forest resources in Ukraine is $12 bln, $40 bln respectively – PM.
The National Health Service of Ukraine has paid more than UAH 226 million to pharmacies for dispensing drugs under the Affordable Medicines program in July-September, the National Health Service reported on Facebook.
According to the report, in July-September, doctors issued more than 3 million electronic prescriptions for patients under the reimbursement program.
The number of pharmacies in which patients can receive Affordable Medicines has increased by over 400 units – up to 8,862 pharmacies and pharmacy branches.
Ukrainian PM predicts growth in cost of farmland fivefold in 10 years, $85 bln of extra GDP.
Ukraine has signed a two-year cooperation agreement with the World Health Organization (WHO) online, Minister of Health Maksym Stepanov has said.
“This agreement defines a clear ‘roadmap’ for our further joint work, in particular, regarding the solution of such challenges of our time as the still excessively high incidence of cardiovascular diseases, diabetes and tuberculosis in Ukraine. After all, the fight against the pandemic does not stop our efforts to implement strategic and qualitative changes in the health care system,” the minister wrote on his Facebook page.
Due to coronavirus (COVID-19) pandemic, the agreement was signed online simultaneously in Kyiv and Copenhagen.
Pharmacies receive UAH 226 mln from National Health Service under reimbursement program for July-September.
The seaports of Ukraine in January-October 2020 handled 132.05 million tonnes of cargo, which is 2.2 million tonnes more than in the same period in 2019.
According to the results of the reporting period, the transshipment of export cargo increased to 101.36 million tonnes (+ 3.8%), cabotage – up to 2.07 million tonnes (+ 23.3%), the press service of the Ministry of Infrastructure of Ukraine reported with reference to minister Vladyslav Krykliy on Friday.
Above all, the ports handled grain cargo and ore – 39.4 million tonness and 37.2 million tonnes, respectively. At the same time, the transshipment of ore in 10 months of the current year has grown by 22.3%, ferrous metals – by 9.5%, oils – by 4.6%, and oil fuel – 2.4 times.
Transshipment of containers has reached 869,500 TEU and exceeded the last year’s figure by 7.1%.
Ukraine, WHO sign two-year cooperation agreement – Stepanov
The head of the investment group Concorde Capital, Ihor Mazepa, has announced the entry into a project of a cottage village and a hotel in the Shelest suburban complex and the construction of phase two of Goodlife Park in Vyshgorod district of Kyiv region.
At this stage it is planned to send more than $25 million to the implementation of the projects, and the total amount of investments in them, taking into account previous investments, will exceed $60-65 million.
“Previously, the main focus was on the growth of consumption, so we invested in the production of cardboard and cement, now we are betting on de-urbanization and suburban real estate. There are at least three more projects similar in scale to Goodlife and Shelest in the pipeline,” Mazepa said in an exclusive interview with Interfax-Ukraine.
Thus, the group is investing about $10 million in the Shelest cottage community project, located next to the Shelest suburban complex near Kyiv. The housing area in the project will be 10,000 square meters.
In addition, on the territory of the Shelest complex, the construction of its hotel part with 100 rooms, including a SPA, continues. Investment in the hotel project is $15 million.
“In total, Shelest will have $30-35 million [of investment], taking into account previous investments,” Mazepa said.
The construction of phase two of the elite cottage town Goodlife Park has also started. The project provides for the construction of 30 cottages and additional infrastructure. According to Mazepa, the total investment in Goodlife Park is $35 million.
“In addition, we are considering a couple of similar projects in other directions, and we will look for co-investors for them. Accordingly, we expect a decent return on investment,” he said.
As Mazepa said, the de-urbanization trend and quarantine restrictions significantly increased the demand for suburban real estate, which stimulated an increase in rental rates and prices.
“We are witnessing a boom in the suburban real estate market: rental rates have grown by 1.5 times, especially in the premium segment. There are cases when they have doubled. We have simply sorted out everything decent that could be rented. And this, of course, affects the sale of new suburban real estate. If rents go up, then property prices also go up. And along with this, buying activity grows. This is what we have seen for the past nine months. This applies to Goodlife, Shelest, as well as many other suburban stories – everything is perfect there: a new demand began to appear, which we have not yet seen and which we did not expect,” he said.
Ukrainian seaports increase transshipment of cargo to 132 mln tonnes in 10 months
Agro-industrial holding Astarta plans to sell sugar assets in Kharkiv region – Savyntsi and Novoivanivsky refineries, co-owner of the holding Viktor Ivanchyk has said.
“Last year we worked without Savyntsi refinery, and this year without Novoivanivsky refinery in Kharkiv region. Sugar beet is not grown around these enterprises due to the weather conditions. Kharkiv region is one of the regions where the drought is felt most acutely,” he said in an interview with NV.
At the same time, Ivanchyk did not indicate at what amount the enterprises are being evaluated. He also did not rule out that Astarta may announce their sale by the end of the year.
When asked whether the company is interested in investing in leased land, the co-owner of the holding said: “Yes, if these are long-term lease agreements.”
“When the relevant legislation comes into force and we are allowed to do this [to buy land], then we can think about whether it is profitable for us to invest in this long-term asset and what rate of return we could consider acceptable for ourselves comparable with the opportunities that we have when leasing land,” he said.
Concorde Capital invests over $25 mln in three suburban real estate projects near Kyiv
